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MB-920 Practice Question: Which TWO of the following are valid billing…
Which TWO of the following are valid billing methods in Dynamics 365 Project Operations? (Choose two.)
⚠ Common exam trap
Many exam-takers confuse 'Flat Fee' or 'Cost Plus' as valid billing methods because they sound similar to industry terms, but Dynamics 365 Project Operations strictly uses only Time and Material and Fixed Price as its two billing methods.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Time and Material
Time and Material (B) is a valid billing method in Dynamics 365 Project Operations where customers are billed based on actual hours worked and expenses incurred, plus a markup. Fixed Price (C) is also valid, where a single total price is agreed upon for the entire project scope, regardless of actual effort. Both are core billing methods supported in the system for project-based invoicing.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Flat Fee
Why it's wrong here
Not a standard billing method.
- ✓
Time and Material
Why this is correct
Standard billing method.
- ✓
Fixed Price
Why this is correct
Standard billing method.
- ✗
Retainer
Why it's wrong here
Payment type, not billing method.
- ✗
Cost Plus
Why it's wrong here
Not a standard billing method.
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